Gold drops to $4,430 after US economic data
Gold prices declined over the past week, recording their second consecutive loss, and closed at $4,430 per ounce. This followed the release of strong U.S. labor market data that showed an addition of 162,000 jobs in August, well above the expected 56,000 jobs, which boosted expectations of a March Federal Reserve interest rate hike. These figures led to an increase in U.S. Treasury yields, putting downward pressure on gold prices, despite ongoing supportive factors such as geopolitical risks, rising oil prices, and investment demand for gold as a safe haven—especially amid concerns related to the Strait of Hormuz and tensions in the Middle East. Technically, the $4,400 level remains important; a break below this support could lead to further correction, while a recovery above $4,450 might improve gold’s performance. In the local market of Kuwait, gold prices were influenced by global ounce movements and dollar fluctuations, with the price of 24-karat gram reaching around 44 Kuwaiti dinars (approximately $143). Gold prices remain dependent on upcoming U.S. data releases and expectations regarding interest rates and inflation.
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